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    Monday, December 27, 2021

    South Dakota Reserves Jump 42% Thanks to COVID Relief Funds

    South Dakota’s reserves increased 42% in one year thanks to an influx of federal COVID-19 relief dollars, according to a new report.

    South Dakota Public Broadcasting reported Thursday that the state’s 2021 comprehensive financial report shows the state took in $62 million more than expected in revenue and spent $29.2 million less than budgeted.

    Total reserves grew from $215.9 million in 2020 to $307.1 million last year. Revenue increased from $4.5 billion to $6.1 billion. The report says the biggest factor was $1.2 billion in pandemic-related grants the state received from the federal government. A growing economy and the construction industry also contributed to increased revenue.

    State spending also increased, from $4.3 billion to $5.6 billion. Most of the increase can be attributed to spending COVID-19 relief funds, the report found.

    Gov. Kristi Noem said the state needs to be cautious about spending in the face of rising inflation. She has proposed keeping at least 14% of the state budget in reserves.

    The report also noted nearly 30% of the budget funded human and social services; about 23% went to pandemic response; about 20% went to education; and almost 13% went to transportation.

    Spending by tourists increased dramatically, rising 31% from October 2020 to October 2021. The number of hotel bookings and airport arrivals grew 33%and 77% respectively. -AP

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